The suppliers in the northern Natal district are the most affected by the statements in the investigation. The suppliers in the southern Natal district are second most affected by the statements in the survey.
Introduction
On the other hand, the NCT can calculate the technical availability of timber from its members, but does not control timber harvesting. Regarding the technical availability of timber, the NCT Forester's Geographical Information System (GIS) is used to verify all relevant information used in the calculation of the annual supply potential (ASP) in tonnes that can be expected each year for eucalyptus , the pine and the spoon. .
Structure of the Research Report
This research will only focus on Eucalyptus supply as firstly, most of NCT's sales volume consists of Eucalyptus and secondly as river availability remains fairly static due to the fact that the sea is cut as needed for an annual quota of bark, which rarely changes from year to year. This concludes the introduction and structure of the report and leads to the second chapter where a theoretical framework is presented.
Introduction
The Forestry Industry in South Africa
As shown in diagram 2.4, the majority of plantations in KZN, where this research took place, consist of hardwood. Looking at the role of pulpwood in the industry from the perspective of incorporation into processing plants, 72.6% of the 20.4 million cubic meters consists of pulp, paper and cardboard.
Defining a co-operative
Membership in the NCT is open to any legal entity that wishes to supply timber through the cooperative. The cooperative provides training and education to its members through field days and field visits.
The Pros and Cons of a co-operative in the forestry sector
On the other hand, it finds the advantages of the cooperative model in the forestry sector. The cooperative structure allows for potentially more members than other forms of business.
Factors affecting the supply of timber in SA and abroad
It is clear that in the case of the forestry sector, in both the American and South African contexts, the advantages of a cooperative structure outweigh the disadvantages. In the South African setting, many of the disadvantages mentioned do not even fully apply. Therefore, it can be said that the cooperative structure here is exceptionally well suited to the forestry sector. This negative relationship indicates that suppliers view and saw wood pulp as substitutes for each other when the price of one increases; the volume to the other is reduced.
Current method used to calculate a theoretical availability of Eucalyptus pulpwood for supply
- The ASP calculation method for Eucalyptus for timber growers with sustainable areas (100 ha or more)
The area used to calculate the ASP of the last compartment on the list is adjusted so that the total area of the compartment is equal to the area to be harvested. The area to be harvested is equal to the total area divided by the rotation age (often years). The ASP for the last compartment is calculated using an adjusted harvestable area to bring the compartment area to be harvested equal to the harvestable area as calculated in a.
A disparity between theoretical and actual supply volume
More often than not, the ASP value is higher than the actual value and therefore, when used to forecast supply volumes, it tends to be an overestimate and it is from this that the need to identify the variables causing the deviation, is clear. With this understanding of the forestry industry, as well as what being a cooperative entails, and after looking at factors that affect supply and current methods of forecasting volumes, the background for the research is set. The following is an explanation of the research methodology used to identify and measure these variables.
Introduction
The Theory of Constraints (TOC)
To effectively address an external constraint, an organization must create and present an offering that first mitigates the impact of the external constraint on. Therefore, the organization's //current actions continue and then constraints and/or problems arise, or //current policies and current actions and behaviors continue. By inserting new proposed actions, behaviors and/or policies into the future reality tree, a new vision of the system's future reality is created.
Application of the Theory of Constraints
In building the Prerequisite Tree, all the obstacles identified by the team are collected, and then each individual identifies an intermediate goal that will overcome the obstacle they raised. In conclusion, the TOC is indeed a useful tool for identifying and addressing constraints that occur in any supply chain. This feature of the TOC ensures that constraints that are alleviated also lead to overall improvement in the system.
Statement of the problem
Research Objectives
Research Design/Strategy
- Questionnaire Design
- Sample Design
- Data Collection
- Data Analysis
This statement tests whether suppliers will slow down or stop stocks at a good price of R270/tonne without selling to opposition markets at this stage. This statement is included in the price competition topic since delivery to other non-pulpwood markets is generally a function of the price of pulpwood. This statement is included in the price competition topic since delivery to other non-pulpwood markets is generally a function of the price of pulpwood.
Research Limitations
The remaining group dealing with price competition has six statements, so the total score of the six statements is multiplied by a factor to get a weighted score. The chosen presentation style hopes to create a clear picture in the reader's mind, as the common saying applies - a picture is worth a thousand words. The selected sample consisted of the 150 largest timber growing members with respect to eucalyptus supply potential in the four main catchments of the NCT's strategic markets of Richards Bay and Durban.
Sample Profile
Findings summarized across all districts are presented first, followed by a district-by-district comparison highlighting identified similarities. In order to give a clear picture, the findings are presented in a visual format, namely graphs and frequency which are in tabular form. Number of questionnaires received from North Natal: 15 (25%) Number of questionnaires received from South Natal: 25 (44%) Number of questionnaires received from Zululand: 4 (21.
Results - All District
- Discussion of All District results
A reduction of R5 relative to alternative buyers in the price NCT pays for eucalyptus pulpwood will reduce my NCT stock. A decrease in the price NCT pays for eucalyptus pulpwood relative to alternative buyers will reduce my NCT stock. A decrease in the price NCT pays for eucalyptus pulpwood relative to alternative buyers will reduce my NCT stock.
Results - Greytown District
- Discussion of Greytown District results
6 15 At a mill delivered price of R250/tonne I will stop/slow down harvest and pound my timber 6 1 Deliveries to other agents or buyers commenced within the last 24 months reduce my NCT supply volumes. 12 The fact that NCT, as a cooperative, has not been transformed into a company, has caused me to reduce my In this district statement, 7 "Labor and or contractor problems are reducing my supplies" scored the highest.
Results - Northern Natal District
- Discussion of Northern Natal District results
15 At a delivered price of R250/ton I will stop/slow down logging and store my wood 50 3 A R10 lower the price NCT pays for eucalyptus pulpwood relative to alternative buyers. 16 At a delivered price of R270/tonne I will stop/slow harvest and store my wood. 20 1 Supplies to other agents or customers that began in the last 24 months reduce the volume of my NCT supply. The graph below shows the interconnection of the statements made in the questionnaire in a visual form and repeats the above analysis.
Results - Southern Natal District
- Discussion of Southern Natal District results
4 A reduction of R20 compared to alternative buyers in the price NCT pays for eucalyptus pulpwood. 3 A R10 reduction compared to alternative buyers in the price NCT pays for eucalyptus pulpwood. 15 2 A R5 reduction compared to alternative buyers in the price NCT pays for eucalyptus pulpwood.
Results - Zululand District
- Discussion of Zululand District results
The graph below shows the interplay of the statements made in the questionnaire, grouped by topic, to provide a clear picture of the clustered topics that have the greatest impact on delivery. 1 Supplies to other agents or buyers started in the last 24 months reduce my NCT supply volume. 6 15 At a delivered price of 2507 tonnes for the mill, I will stop/slow down logging and store my timber 6 2 A R5 reduce the price NCT pays for eucalyptus pulpwood relative to alternative buyers.
Identifying the variables that impact on the supply of Eucalyptus pulpwood timber
This chapter presents the conclusions from the findings of the previous chapter, structured according to the research objectives presented earlier in the report.
Quantifying the impact of the main variables on supplies
Weighting the identified variables according to the significance of their impact on supplies
If we look at the variables through the eyes of the supplier as suggested by Patrick (1996, paragraph 10), it is clear that price is the variable that most affects timber inventory volumes. Unfortunately, it is often difficult or even impossible for an organization to change price as it is determined by market factors beyond its control. According to the TOC, it is not always best practice or possible to address every constraint, but improvement can be achieved by optimizing a variety of factors in order to improve the overall results (Ahmed 2005, p26).
Identifying any similarities between the four districts with regards to issues affecting supply
As can be seen in Table 6.4 when looking at each statement individually, there is almost no correlation between how districts ranked them. The Greytown and Zululand district has the highest correlation with 4 statements ranked in the same position. Greytown and Zululand districts face similar challenges in relation to operational and banking issues, as do Northern and Southern Natal.
Identifying differences between the four districts with regards to issues affecting supply
The Greytown district differs from the remaining three districts in that it is less sensitive to price. Both the Greytown and Zululand districts differ from North and South Natal in terms of banking and operational issues. When addressing these issues, the differences and correlations must be kept in mind and strategies devised and rolled out accordingly.
Summary of Conclusions by District
- Greytown District
- Northern Natal District
- Southern Natal District
- Zululand District
This district is most similar to the North Natal district in terms of price sensitivity, but it shares similarities with the Greytown and Zululand districts in terms of the operational issues it faces. However, this is the only district that has indicated that in the event of low prices, they would rather sell wood to the competition than bank it. The other three districts all rated banking and/or sales to the competition fairly equally.
Introduction
Recommendations to NCT Forestry Co-operative Ltd
- General Recommendations
- Interventions required
- Actions to Continue
- Actions to Discontinue
- Greytown Specific Recommendations
- Northern Natal Specific Recommendations
- Southern Natal Specific Recommendations
- Zululand Specific Recommendations
The cooperative should start a formalized program to educate members about the possible synergies and efficiencies that can exist between different crops. Members must fully understand the role they play in the success or failure of the cooperative. Finally, the cooperative should initiate a program to educate members about the role they play in the supply chain and about the importance of supply chain management.
Further Research Suggested
Members in this area need to be aware of their role in the supply chain and the effect their actions have up and down the chain. Breakwell, G.M, Hammond, S, and Fife-Shaw, C. 2003) Applying the Theory of Constraints to an integrated poultry industry. What is this called the Theory of Constraints and how should it be applied?
Appendix A
MBA RESEARCH QUESTIONNAIRE
3 A R10 drop relative to alternative buyers in the price NCT pays for eucalyptus pulpwood will reduce my NCT supplies. 4 A R20 drop relative to alternative buyers in the price NCT pays for eucalyptus pulpwood will reduce my NCT supplies. 2 A decline of R5 relative to alternative buyers in the price NCT pays for eucalyptus pulpwood will reduce my NCT supplies.
Appendix C
Appendix D
Supplies to other agents or buyers that began within the last 24 months reduce my NCT supply volume. NCT's recent investments, for example in Durban Woodchips and Pulp United, have prompted me to reduce the supply of NCT. The fact that NCT as a cooperative did not transform into a company prompted me to reduce the supply of NCT.
Appendix F
